Oriental Engg to invest Rs 10 cr in new plant

Yamunanagar-based Oriental Engineering Works Private Ltd is coming up with a unit with an initial investment of about Rs 10 crore. The firm manufactures high-pressure hydraulic cylinders; power packs; and pumps and hydraulic applications of up to 700 bar (10,000 psi), for the heavy engineering sector.

The plant will be spread over 1 acre in Yamunanagar and is likely to be operational in six months from the date of the start of construction.

Currently, apart from the domestic market, the company is exporting products to the US, European countries, Malaysia, and New Zealand.

Talking to Business Standard, Director Kapil Gupta said, "There has been significant demand for hydraulic equipment like hydraulic lacks, cylinders, pumps, power packs, etc, in the domestic and overseas markets. Moreover, the boom in the infrastructure sector has fuelled growth."

He added, "On a year-on-year basis we are witnessing a growth rate of 40-50 per cent. So in order to cope with demand, we are putting up a unit, spread over 1 acre, with a total project cost of Rs 10 crore. Civil work is likely to start in 2-3 months and to complete the project we need another six months."

Last year, the turnover of the company was Rs 20 crore and the growth rate 50 per cent. This year also, the company hopes to achieve the same growth rate.

The company has distributors in the United States, Europe, the UK, the Middle East, Russia, Malaysia, New Zealand, etc. with exports accounting for 50 per cent of the turnover. Gupta said the demand for hydraulic products was good.

Gupta said: "The company was laying emphasis on R&D to sustain the desired growth rate. For training, a three-member delegation from Europe has visited our unit and we are in the process of sending three persons overseas for training.

Also, the company is in process of modifying vacuum reciprocating dewatering pump for the UK and the US markets, which was initially designed to suit the conditions of the European and Middle East markets.

Moreover, the company is working closely with a Dutch company for design and modifying the existing product portfolio."

The major customers of the company are heavy engineering plants, steel plants, cement plants, shipyards and port trusts, oil refineries, coal mines, and construction companies, etc.

Also, the company got the ISO 9001 certificate in September 1993 from TUV Cert Germany.